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Updated: Jul 18, 2026

The HoneyComb Paradigm for Research on Collective Human Behavior
Published on: January 19, 2019
Minority games with score-dependent and agent-dependent payoffs
1Zhejiang Institute of Modern Physics, Zhejiang University, Hangzhou 310027, People's Republic of China.
Abstract:
Score-dependent and agent-dependent payoffs of the strategies are introduced into the standard minority game. The intrinsic periodicity is consequently removed, and the stylized facts arise, such as long-range volatility correlations and "fat tails" in the distribution of the returns. The agent dependence of the payoffs is essential in producing the long-range volatility correlations. The new payoffs lead to a better performance in the dynamic behavior nonlocal in time, and can coexist with the inactive strategy. We also observe that the standard deviation sigma2/N is significantly reduced, thus the efficiency of the system is distinctly improved. Based on this observation, we give a qualitative explanation for the long-range volatility correlations.
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